We all have heard about the post office being a center where you used to get physically transported letters but now the post office is not limited to these services only. Now the Post Office provides services similar to the nationalized banks where you can transit or deposit money without any hassle. The post office is a trusted institution and has been a great source for generations. However, with growing popularity, the Post office has introduced numerous schemes all over the country. Post office monthly income scheme (POMIS) is among the best schemes introduced where you can invest a desired amount and get a fixed amount of interest every month. In this article, we will share all the necessary details related to the Post office monthly income scheme (POMIS), eligibility criteria, interest rate, etc.
What is the Post Office Monthly Income Scheme (POMIS)?
The Post Office offers POMIS, a scheme that provides various banking services and products that work under the Finance Ministry. The best part is that it is highly reliable provides a low-risk monthly interest scheme(MIS) and offers a steady income. The maximum amount of investment to be done by an individual in this scheme is 9 lakh individually and 12 lakh jointly in a period of 5 years. The main motive of this scheme is to ensure the protection of capital while providing an attractive interest rate of 7.4% per annum. Post office monthly income scheme for senior citizens offers various benefits to the elderly people where they can invest before retirement and earn monthly income during their post retirement life.
Post Office Monthly Income Scheme (POMIS) Features and Advantages
If you are planning to apply for the monthly income scheme post office, then you must know about the benefits it offers to its customers. Here are some of the features and benefits of the Post office monthly income scheme (POMIS):
- Low–risk investment: The Post office monthly income scheme (POMIS) is an income scheme so there is no fear of market risk and is a safer option for investment.
- Capital protection: The scheme ensures the safety of capital until maturity as the Government is looking after the safety constantly.
- Tenure: The Post office monthly income scheme (POMIS) tenure is 5 years and the subscriber can easily withdraw the matured amount at the end of the maturity.
- Affordable deposit amount: The initial amount of the investment is INR 1,000 and according to the capacity of an individual they can deposit money. The returns are ensured to be safe and don’t pressure an individual. However, it is necessary for you to know that the maximum limit for the POMIS is 9 lakh while 15 lakh for joint.
- Guaranteed returns: The monthly income scheme post office provides guaranteed returns and provides additional income as interest every month. The best part is that you will get a promised return every month as the scheme is not inflation–based and is similar to the Fixed–income Investment.
- Payout: The subscriber will receive a payout on the date of their first investment and not at the beginning of the month.
- Tax efficiency: This whole scheme is tax efficient making it easy for the people to afford it. The investment doesn’t come under Section 80C and even the TDS is not applicable.
- Multiple account ownership: The scheme provides the opportunity where you can open more than one account in your name. But it is necessary for the deposit amount to not exceed more than 9 Lac.
- Joint account: The monthly income scheme post office offers to open a joint account with 2 – 3 people at once. However, if this is the case then you can deposit up to 15 Lac at once.
- Nominee: The beneficiary can choose a nominee for the claim and if he/she dies the claim will be provided to the nominee after the maturity of the scheme.
- Reinvestment: Subscribers can reinvest money in the annuity post maturity in the scheme and extend the scheme for 5 years to continue getting benefits.
- Ease of money/interest transaction: The interest can easily be collected directly from the Post office and if wanted they can get their interest transferred directly to their savings account. Moreover, reinvesting interest money is also another advantageous option.
Who Must Invest in the Post Office Monthly Income Scheme (POMIS)?
The post office monthly income scheme (POMIS) is a flexible and reliable scheme that is open to every individual providing risk-averse investment along with various tax benefits. If you want to enjoy POMIS benefits then it is time for you to apply for this great scheme and secure your future with financial support.
Eligibility Criteria to Open Post Office Monthly Income Scheme (POMIS)
The eligibility criteria that an individual needs to follow to apply for the post Office monthly income scheme (POMIS) are:
- The citizens of India are allowed to apply for a monthly income scheme in post office.
- NRIs are not allowed to apply for this scheme as it is not for the Indian citizens.
- The person opening POMIS needs to be an adult and they can open an account for a third party.
- The account can be opened on behalf of a minor by their parents who are below the age group of 10 years till the child avails the age of 18.
- Once the minor becomes mature then the account will be converted to his/her name.
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Post Office Monthly Income Scheme Maximum Investment Limit Details
| Account type | Maximum deposit |
| Joint account of 2 or 3 person | INR 15 lakhs |
| Single account | INR 9 lakhs |
How to Open a Post office Monthly Income Scheme (POMIS) Account?
People wanting to apply for the monthly income scheme post office often feel tedious to open a POMIS account. However, if you are also thinking of it in that way then let me clarify for you, it is an easy and quick process that requires nothing extraordinary. All you have to do is to follow the quick and easy step-by-step guide:
Step1:- Firstly, you have to open a Post office account if you don’t have one and if you already own a savings account then it’s good.
Step2:- In the Post Office, you’ll get the POMIS application form which you need and fill it with all the necessary details mentioned in the form.
Step3:- Submit all other required documents along with the application form. The documents include residential proof, the ID of the subscriber, passport-sized photo along with the signature of the beneficiary and the nominee.
Step4:- You have to make the initial payment in the account through cheque or cash. Once processing is completed, your account will open.
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Penalty or Consequences of Early Withdrawal
If you are depositing money in the monthly income scheme in post office, then it is necessary for you to know about the consequences that come with early withdrawal.
| Time of POMIS withdrawal | Outcomes of premature withdrawal |
| Before completing one year of investment | Zero benefits |
| Between 1st and 3rd year of investment | The entire annuity will be deposited to the bank account after deduction of 2% |
| Between 3rd and 5th year | An entire annuity will be refunded to the bank account after deducting a 1% penalty. |
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Post Office Monthly Income Scheme Interest Rate
Post office monthly income scheme (POMIS) provides an interest rate of 7.4% every year and the interest income will be deposited in the bank account every month. Below we have mentioned the previous year’s data on the post office monthly income scheme interest rate.
| Time interval | Interest rates |
| 1st January 2018 – 31st December 2018 | 7.30% |
| 1st October 2018 – 31st December 2018 | 7.70% |
| 1st January 2019 – 31st March 2019 | 7.70% |
| 1st July 2019 – 30th September 2018 | 7.60% |
| 1st October 2019 – 31st December 2019 | 7.60% |
| 1st January 2020 – 31st March 2020 | 6.60% |
| 1st April 2020 – 30th September 2020 | 6.60% |
| 1st October 2022 – 31st December 2022 | 7.10% |
| 1st January 2023 – 31st March 2023 | 7.10% |
| 1st April 2023 – 30th June 2023 | 7.40% |
| 1st October 2023 – 31st December 2023 | 7.40% |
| 1st January 2024 – 31st March 2024 | 7.40% |
| 1st April 2024 – 30th December 2024 | 7.40% |
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FAQs
1. Is the post Office monthly income scheme (POMIS) a good investment?
The post office monthly income scheme (POMIS) is a great scheme for every individual and is considered to be the highest–earning scheme with an interest rate of 6.6%. The subscriber will get the monthly interest till the maturity.
2. What is the 5-year post office monthly income scheme interest rate?
The interest rate for the 5-year MIS is 7.4%.
3. Which office scheme gives 8% interest?
The Senior Citizen Savings Scheme offers an 8.2% interest rate.
4. What Is the eligibility criteria for POMIS?
In order to apply for the POMIS, an individual needs to be an Indian citizen and above the age of 10 years.
5. What are the disadvantages of POMIS?
Some of the disadvantages of POMIS are fixed returns, no cumulative options, and limited tenure of investment
